[29athrowaway]

Having a low credit score is the main reason people are not eligible for credit cards. One of the reasons people have low credit scores is because of not paying.

Now, why is it that they do not pay? not because they're bad people with bad intentions. It's because they gradualy accumulate debt until they cannot repay anymore.

Let's say you meet the requirements for a credit card, but you have a low salary. Then, you go to the supermarket, and pay your groceries in monthly installments because you cannot afford them. You know this will work only temporarily but the choice is to not have anything to eat. So many people just go ahead and do it. They trade a present problem with a future problem.

Eventually, they fail to pay for food they bought 6 months ago and their credit score goes to nothing, they get blacklisted, and their credit card gets killed.

In Latin America it is not rare at all to hear about people making $400 a month that are $40,000 in debt.

[29athrowaway]

There is also decision fatigue: Low income people are forced to make so many decisions that eventually they give up and make decisions that are bad.